Digital media needs to shift from incrementalism to innovation for continued relevance in 2025

Infinity symbol with one circle containing a gear icons and the other featuring a lightbulb, representing innovation and transformation in the digital media industry for 2025.

Mark Zohar, CEO, Viafoura

For the digital media industry, 2024 was a year characterized by ongoing disruption and challenges, balanced by emerging opportunities for resilience and growth.

For many digital publishers and media brands, much of last year was spent modernizing core infrastructure and systems (e.g., CMS upgrades, dynamic paywalls, authorization systems), improving site performance (e.g., core web vitals and SEO) and optimizing subscription strategies. 

The impact of declining search and social referral traffic, coupled with the ongoing saga of the deprecation of third-party cookies, led digital publishers to invest in strategies designed to drive direct traffic, build active and loyal communities on their owned and operated properties and focus on the collection and activation of first-party data. Overall, 2024 was a critical transition period for digital media brands striving to adopt more sustainable commercial models.

2025 is the year the industry needs to shift from incrementalism to innovation — placing bigger bets that will help reshape and revitalize the role and relevance of digital media in the modern, highly fragmented and competitive attention economy. Ultimately, this means investing in bold new initiatives and strategies that will attract new audiences, transform the user experience and support alternative commercial models.

Appealing to a wider audience attracts new consumers

Attracting new audiences isn’t limited to younger consumers, as detailed in FT Strategies’ excellent research and report on Next Gen News

This process requires a much broader strategy that embraces and appeals to a wide range of audience segments, including hobbyists, fans and activists seeking online communities such as Facebook Groups and Reddit to share their interests, connect and communicate. Strategies also need to appeal to professional and specialized audiences seeking expert-level content relevant to their industries and professions, as well as creators and influencers reshaping how and where consumers access their news and entertainment

Digital publishers have a unique opportunity to leverage their trusted brands and reach to create new products, experiences and communities that appeal to these diverse segments of non-traditional audiences.

New technology transforms the user experience for enhanced engagement

While mobile, video and social technologies have enhanced the overall user experience on digital media sites and apps, the fundamental approach to content delivery, consumption and engagement hasn’t changed since the days of the first web browser. 

The emergence of generative AI, advanced user-generated content creation tools and new form factors, such as AR/VR and wearables, provide media brands an opportunity to rethink and revamp the core user experience. This year, it’s likely new story formats featuring chatbots will emerge where users can interrogate them for context, sources and questions. Users can leverage chatbots to co-create stories and media that include user-sourced contributions and commentary, leading to the ultimate transformation of the venerable home page into an interactive social and community feed.

Exploring additional revenue streams paves the way for expanded reach and opportunities

The transition from advertising-supported commercial models to subscription- or premium-based revenue models has been fast and slow. Paywalls are omnipresent, but subscription conversion rates remain stubbornly low, and actively blocking users from consuming content drives down engagement rates, return visits and brand loyalty. This doesn’t mean digital publishers should abandon or deprioritize their subscription strategies. Rather, investing in alternative commercial models that diversify their revenue streams further is the way to go. 

This goes beyond events and affiliate commerce, though significant growth opportunities remain in both areas. For example, the behavioral insights and trend data from users’ content consumption patterns and engagement activities available to digital publishers are a goldmine. While it’s currently used for improving ad targeting, it’s also immensely valuable for market researchers, pollsters, brand marketers and economists. Licensing this anonymized consumer insights data or using generative AI to create custom research reports is an opportunity to generate high-margin revenue from a core asset publishers uniquely possess. McClatchy’s acquisition of Trend Hunter, a consumer trends and insights provider, this past year, is an early indicator of this emerging commercial opportunity. Other alternative commercial models may include partnering with non-traditional sponsors, such as creators and influencers, to generate new advertising opportunities and reach new audiences on and off-platform.

While none of these big bets are easy, sometimes the longshot is worth the risk for a remarkable payoff. Investing in bold strategies and initiatives such as alternative commercial models, attracting new audiences and transforming user experiences will help digital publishers and media brands stay relevant throughout 2025 and beyond.

Sponsored by Viafoura

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